- Weekend Bitcoin transactions drop to 16% due to spot Bitcoin ETFs.
- Bitcoin volatility decreases; weekend trading volume falls sharply in 2023.
- Silicon Valley Bank failure impacts Bitcoin weekend trading due to payment disruptions.
Kaiko, a firm specializing in cryptocurrency research, has indicated that the percentage of Bitcoin
Kaiko pointed out a decrease in Bitcoin’s volatility, which was once a defining characteristic of the leading cryptocurrency. Bitcoin’s trading activity, which includes Saturdays and Sundays, was once notorious for its significant price swings during these times.
Kaiko’s data indicates that the volume of Bitcoin traded over the weekends has diminished, having decreased from its peak of 28% since 2019. Although there has been a steady decline over time, the drop in Bitcoin’s weekend trading volume has been particularly sharp this year. Dessislava Aubert, a Senior Analyst at Kaiko, attributes this downturn to the influence of ETFs.
It’s important to recognize the impact that the introduction of spot Bitcoin ETFs in January of this year has had on Bitcoin. Following the launch of these ETFs, Bitcoin’s value soared, reaching a record high. Even after a significant pullback, the leading digital currency has still gained approximately 45% in value this year.
In contrast to other cryptocurrencies, which are traded continuously throughout the week, including weekends, spot Bitcoin ETFs adhere to the same trading hours as traditional equities, meaning they do not trade during weekends. With the adoption of this trading schedule, Kaiko noted an increase in the percentage of Bitcoin traded on weekdays from 3 p.m. to 4 p.m., rising to 6.7% from 4.5% in the last quarter of 2023.
Kaiko highlighted that this specific hour is when the benchmark fixing window occurs, which is when ETF owners set the price of Bitcoin to calculate the net asset value of the ETF. Additionally, Kaiko linked the recent failures of Silicon Valley Bank and Signature Bank in March 2023 to the reduced volume of Bitcoin trading on weekends. The firm pointed out that market makers are no longer able to utilize the banks’ continuous payment systems for real-time cryptocurrency transactions.
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